We talk to Bart McCollum, President and COO of Ameriflex, about the human resources and how benefits packages done correctly is a benefit to your business.
Please forgive any typos in this hasty transcript.
Matt Register: Hey guys, welcome back to Texas Business Radio. We’re going to continue to bring you the best of the Vistage Executive Summit here at the Irving Convention Center in Irving, Texas at Los Colinas. We’re at the Vistage Executive Summit 2017 for Dallas. I’m your host Matt Register, here as always with Jay Curry. Jay what’s going on sir?
Jay Curry: Oh, isn’t it just grand to get with about seven or eight hundred CEOs. And there’s just a lot of great stories, a lot of great camaraderie going on and it’s just a good, fun time to be on.
Matt Register: No, absolutely. We’re going to be able to bring you the best of the show. There’s a lot of business services here, there’s a lot of CEOs here. If you want to grow your business, if you want to get better as a CEO and get better as a business owner, this is not a bad place to be. We have Bart McCollum, who is the Chief Operating Officer and President of Ameriflex. Bart, welcome to the show sir.
Bart McCollum: I appreciate you guys having me. Thank you so much.
Matt Register: Tell me a little bit about America flex because you guys are, are a HR type company.
Bart McCollum: Yeah, we are. And, you know, as you guys probably know, HR gets more and more complicated, pretty much every day.
Jay Curry: Every day, yeah.
Bart McCollum: And it kind of takes your focus away from what you’re, what you’re really trying to do in most cases, regardless of what kind of organization have. You got some kind of mission out there, whether you’re nonprofit or for profit and you’ve got to deal with people. People are the engine and doing so has just gotten amazingly complex.
Matt Register: Well it certainly has and getting more complex every day. Every time, you know, Congress is in session, it seems like we get additional regulations and laws that add to that complexity. How has regulation, you know, in the last five or 10 years that complexity has gone up significantly. How has that changed your business?
Bart McCollum: Well, so, Ameriflex essentially, at the core, what we’re trying to do is help middle class Americans contend with the rising cost of health care. Now we do that through employee benefits and mostly through consumer directed health care type products like health savings accounts.
Matt Register: Sure.
Bart McCollum: So that product is, the adoption of HSA has grown significantly over the last 8 to 10 years because healthcare costs have grown significantly over the last 8 to 10 years. But kind of, to your point, a second ago, about regulations, when the Affordable Care Act was passed, which now were, you know, maybe going to be seeing that getting chopped up a little bit. Right? With the Trump administration.
Matt Register: Sure. Hey, we’ll see. Right? But…
Bart McCollum: We’ll see. Yeah, yeah. That was roughly 1800 pages of law. And typically when a law gets passed, a federal law gets passed, it’s about 20 pages of regulations that come with each page of law. Well this law was so complicated there ended up being on average about a hundred pages of regulations. So if you multiply that out, you get, what, about a hundred eighty thousand pages of regs. If I did the math correctly. Maybe it’s even 1.8 million. I’m not sure. But these are all, mostly regulations that, that are, well, health insurance companies obviously but employers because most of our health care is dispensed through employers in this country. We’ve got 160 million people covered through their employers.
Matt Register: Well, I tell you what, that’s job security for you because I assure you one thing, as a CEO, I’m not reading all of them. Right?
Jay Curry: Yeah.
Bart McCollum: Nobody is. I mean even the Supreme Court when they, when they…
Jay Curry: Or the legislators that passed it. Right?
Matt Register: Except for you guys. Right?
Bart McCollum: Heard arguments for the second time. Yeah. And so it’s kind of, it’s a little bit of a, you know, as things get more complicated, it’s better for our business in a way. However, what we try to do is make things a little easier for people.
Matt Register: Sure.
Bart McCollum: So, if things are getting more complicated outside. You know, if we can go to people and say “we’re making it a little easier for them”. Yeah, were making it a little easier for them but still the baseline is, is getting worse and worse. And so it’s a little bit of, kind of a double edged sword for us.
Jay Curry: So Bart, who, are you selling into the CEO to help their people? Is that…
Bart McCollum: Precisely.
Jay Curry: So that’s your client, is the CEO.
Bart McCollum: Our client is employers. Small to large employers of all shades and sizes.
Jay Curry: So, you don’t really care how small or how large it is.
Bart McCollum: Our sweet spot, I would say is mid-market. I think, I think our average is probably around 150 employees, is what you would see our client base. But we have, we have clients that have over 10,000 employees
Jay Curry: Right.
Matt Register: Sure.
Bart McCollum: We’ve got ones and twos there occasionally. And our business is mostly distributed through benefits consultants and brokers. So most, most employers are hiring somebody to help them buy their benefits. And we’re generally a piece of that, piece of that pie that’s coming in.
Matt Register: Well, this is certainly something that as a CEO or as a business owner that has grown his company to the point that the complexities of this is becoming overwhelming, you don’t expect the CEO to understand everything there is to know about them. Right?
Jay Curry: To stay on top of it, is just almost…
Matt Register: That’s a full time of the job for you guys.
Jay Curry: Yeah. Impossible.
Matt Register: No, that is exactly right.
Bart McCollum: And you don’t, you don’t want a CEO focusing on those things.
Jay Curry: That’s right.
Bart McCollum: Because they’re probably trying to build something.
Matt Register: Correct.
Bart McCollum: And if they focus on that, they’re not growing their business. Right?
Matt Register: Nope. 100 percent. So Bart tell us the easiest way to get in touch with you, should somebody want to.
Bart McCollum: MyAmeriflex.com is the, is the easiest way. We’re actually gonna be launching a new web site here in a couple weeks.
Matt Register: OK, good.
Bart McCollum: Yeah, that probably be the easiest way.
Matt Register: MyAmeriflex.com. Guys, if you don’t have a chance take notes, don’t worry about it. We’re going to have links right there at Texasbusinessradio.com. As well as being able see the entire episode in beautiful high definition video. Bart McCollum, President and CEO of Ameriflex. Bart thank you very much for joining us.
Bart McCollum: Thank you guys. Thank you so much.
Jay Curry: Congratulations.
Matt Register: Hey guys, we have to pay some bills. We’re going to be back right after the break. Don’t go anywhere.
Sponsored in part by:
In addition to hosting "Texas Business Radio," Matt is an investment banker and serial entrepreneur from Montgomery, Texas. He is the owner of RREA Media and Register Real Estate Advisors and a Managing Director and Principal at Corporate Finance Associates. He has a BS from the United States Military Academy at West Point and an MBA from Rice University in Houston. You can read more about Matt HERE.